What is the difference between the Governor of the Bank of Canada and the Minister of Finance in terms of managing the economy? (3 marks)The full employment GDP (LAS) of a country is $600 billion and the equilibrium level is $685 billion. The MPE for the country is 0.8.

a.Does the above economy have a recessionary or inflationary gap and briefly explain why?

b. How much would GDP need to change to close the gap?

c.To close the gap the government would have to increase or decrease spending? and by how much (provide a dollar amount!)